The Duke of Sussex and six other prominent figures involved in a £38 million privacy claim have been cautioned about the potential financial fallout of their ongoing legal battle.
++ The peregrine falcon: nature’s fastest killer in the sky
In a ruling delivered on Tuesday, two High Court judges stressed that the claimants — including Prince Harry and Baroness Lawrence of Clarendon — must have the “clearest possible understanding” of how the case is progressing, particularly as legal fees continue to escalate. The judgment raised the possibility that all seven claimants, who are suing the publishers of the Daily Mail and Mail on Sunday, could face a multi-million-pound costs order if they lose the case outright.
The judges also highlighted that if the group secures only a partial victory, those who lose may shoulder a significantly larger — and potentially crippling — financial burden. Judge David Cook and Mr Justice Nicklin underlined that the claimants risk substantial costs if their claims are unsuccessful. The court heard that the group holds collective insurance cover of £14.1 million to meet Associated Newspapers’ costs should all seven lose.
However, each claimant has also taken out an individual policy worth £2.35 million. This means that if only some of the group succeed or if others withdraw, the remaining claimants could be left responsible for costs far exceeding their individual cover.
++ NHS warns of severe winter flu season as cases continue to climb
The ruling stated: “It is imperative that the parties, and in particular the individual claimants, have the clearest possible understanding of the consequences of the way in which this litigation is being conducted. If this requires reassessing their ATE [after-the-event insurance] cover, it may be in their best interests.”
The judges emphasised that the issue must be addressed now, given the substantial costs already incurred and the further expenditure expected as preparations begin for next year’s trial.
In an earlier ruling, the court described the estimated £38.8 million costs as “clearly outside the range of the reasonable”. Judge Cook added that the sums were “manifestly excessive and therefore disproportionate”.
The Duke of Sussex and Baroness Lawrence — whose son Stephen Lawrence was murdered in 1993 — accuse Associated Newspapers of phone hacking, call bugging and other unlawful practices such as obtaining confidential information through deception. Other claimants include Sir Elton John and actress Sadie Frost. A nine-week trial is scheduled to begin in January, during which the court will examine disputed allegations published by the newspapers.
During a November hearing, the High Court considered how any adverse costs might be divided among the high-profile claimants should they be required to pay a portion of Associated Newspapers’ legal fees. Tuesday’s judgment reiterated that each claimant’s individual case is intended to support those of the others, forming a collective claim. A further preliminary hearing is expected on 18 December, with the full trial due to commence in mid-January.
